Mortgage rates nudged down a little this week, giving borrowers a small break before what could be a bigger change next week. Nationally advertised rates fell by five basis points on several popular terms:
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The three-year fixed (uninsured) slipped to 3.94%
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The five-year variable (uninsured) eased to 3.99%
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The five-year fixed (insured) dipped to 3.84%
Regional lenders and smaller brokers often have slightly better deals. For instance, Ratebuzz is offering insured variable rates in Ontario as low as 3.69% (prime minus 1.01%), while big banks usually charge more for their brand name.
The bigger story, however, is what’s coming from the Bank of Canada. The prime rate is widely expected to be cut by a quarter point on Wednesday, with market odds of about 90%. Looking ahead, analysts think there could be one more cut before this cycle ends—but that depends on political and economic factors.
If Ottawa unveils a large deficit in the November 4 budget, or if Canada strikes a major trade deal with the U.S., rate cuts might be put on hold. Of course, predicting those outcomes isn’t easy—much like waiting for a real solution to Canada’s housing affordability crisis. Patience, it seems, is the name of the game.